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FedEx Surges as E-Commerce Demand Sends Profit Climbing
- Ground unit leads sales increase, air division also posts gain
- Earnings top Wall Street’s highest estimate for fiscal quarter
Photographer: Christopher Lee/Bloomberg
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FedEx Corp. surged as a wave of e-commerce demand bolstered pricing power and propelled earnings amid the coronavirus pandemic.
Sales at the ground-delivery unit jumped 36% to $7 billion and operating margins rose to 11.8%, the highest in a year, FedEx said in a statement Tuesday. That helped push the courier’s total earnings beyond Wall Street’s highest estimate in the fiscal quarter ending Aug. 31.